DR Congo: Jinchuan strengthens its presence in copper with a new bank loan

Chinese copper giant Jinchuan Group is making a welcome return to the financial scene in the Democratic Republic of Congo (DRC). According to news reports, the company, already active in copper and cobalt extraction, has secured a new bank loan to support its ambitions in the country. This financing marks a key step for Jinchuan, which plans to open a third mining site in the DRC, consolidating its position in a sector that is strategic for the global energy transition.

Jinchuan Group, known for its operations in the Ruashi mine (in which it holds a 75% stake via its subsidiary Jinchuan Subco) and the Musonoi project, is a key player in the Congolese mining sector. In 2021, the company had already secured a $350 million loan to develop the Musonoi mine, after successfully turning around the profitability of its Zambian mine at Chibuluma, which had been in difficulty for several years. This new financing, the details of which were not disclosed, should enable Jinchuan to accelerate its projects and strengthen its production chain for copper and cobalt, two essential metals for electric vehicle batteries and green technologies.

The DRC, which supplies more than 70% of the world's cobalt and vies with Zambia for African leadership in copper production, remains a strategic investment area for Chinese companies. Jinchuan is part of a wider dynamic, alongside other Chinese giants such as China Molybdenum (CMOC) and Zhejiang Huayou Cobalt, which dominate the Congolese copper-cobalt sector. These companies are benefiting from the growing demand for energy transition metals, despite the logistical challenges and tensions associated with mining contracts.

This renewed activity comes at a time when the DRC is seeking to renegotiate certain mining partnerships in order to maximise its revenues. In 2023, a dispute between CMOC and Gécamines, the Congolese state-owned mining company, led to the accumulation of a stockpile of copper and cobalt valued at $2 billion at the Tenke Fungurume mine. Although this episode has now been resolved, it illustrates the recurring tensions between foreign operators and the Congolese authorities, who are anxious to obtain a better share of the country's mineral wealth.

The announcement of Jinchuan's loan comes at a time of soaring copper prices, driven by global demand for green technologies. However, many challenges remain: limited infrastructure, political instability and pressure for more responsible mining, particularly in terms of artisanal labour, where children are sometimes involved. Jinchuan, like its competitors, will have to navigate this complex environment to realise its ambitions.

At the same time, the opening of a third mining site could strengthen the DRC's position as Africa's leading copper producer, while intensifying competition with Zambia. This development also confirms the growing influence of Chinese companies in the African mining sector, a phenomenon that is bound to spark debate about the balance of benefits for local populations.

By securing this new financing, Jinchuan Group is sending a strong signal of confidence in the DRC's mining potential. As the country continues to attract foreign investment, the management of natural resources and international partnerships will remain crucial to ensuring sustainable economic development. For now, Jinchuan looks well placed to capitalise on the global rush for copper and cobalt, while meeting the challenges of a market that is as promising as it is complex.